Development site selection: variables and process considerations

Commercial real estate projects include a myriad of variables, from vision and use to market and budget. Projects start with big ideas that are implemented through endless details. After understanding market dynamics and deciding on the product type you want to develop, selecting a site is one of the next steps in the development process. 

Numerous factors are taken into consideration for site selection; a few of these variables include:

  • Alignment with market fundamentals for the use being developed, i.e.: proximity to employee or client base, shoppers, clients

  • Zoning and other regulatory

  • Road and utility access

  • Public transportation

  • Price

  • Opportunity for incentives

  • Site geometry

  • Investment strategy

  • Environmental condition

  • Opportunity zone location

We have several resources available to help you navigate the development process. Our Fee Development brochure is a great place to start. Likewise, the work we did on The 428 building offers insights into the many facets of the process.

Redevelopment sites can be even trickier with the need for demolition or building reuse and often a decision on likelihood of success for rezoning or acceptance of a new development by the surrounding neighborhood. Even if a rezoning is not required, quite often a development must make its way through a community design review. Also, attention to environmental condition is key for redevelopment sites— understanding past use to minimize and mitigate any potential risk. 

Often, redevelopment sites located in an already developed area, can be prime sites with good, existing infrastructure and built-in populations of users. With the boom in multifamily development and the required comprehensive plan updates for all cities, counties and townships within the seven-county Twin Cities metropolitan region as outlined by the Metropolitan Council, many redevelopment sites have been guided for change and rezoning, presenting additional redevelopment opportunities.

Economic incentives are quite often available for redevelopment projects and care should be given to fully research these opportunities to reduce cost or to enhance the project with funds available from these programs.

As of the date of this article, KimbleCo has prime redevelopment sites on the market for purchase. See our Current Listings for more information.

If you have any questions on the development process whether on a greenfield or redevelopment site, please give us a call!